Etisalat’s Q1 profit surges 7.9% as subscribers rise

Etisalat on Wednesday said its consolidated net profit in first quarter rose 7.9 per cent to Dh2.3 billion due to the resilience and agility shown by the company’s business operations in the wake of the Covid-19 pandemic.

In a statement, the UAE’s telecom giant said consolidated revenues also amounted to Dh13.2 billion during the January-March 2021 period while net profit margin stood firm at 18 per cent. Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached at Dh6.8 billion, representing a year-on-year increase of 0.7 per cent and resulting in EBITDA margin of 51 per cent.

“Etisalat Group’s first-quarter results are a continuation of the strong performance the company has achieved over the past year due to the resilience and agility shown across our business operations,” Hatem Dowidar, CEO, Etisalat Group, said in a statement to Khaleej Times.

He said the company generated record results in the new hybrid scenario helping consumers adapt to a new work-and-learn-from-anywhere reality while continuing to deliver innovative services subscribers require and demand.

“Our teams rallied to support our customers with technology playing a central role in keeping our society, economy and lives connected. Digital evolution is the future where telecom operators are the key players to enable the transition and be the exemplary adopters of digital transformation,” he said.

The Abu Dhabi-listed telecom firm said its aggregate subscriber base also climbed four per cent to hit 156 million mark during the first quarter. In the UAE, the subscriber base reached 12.4 million subscribers in the first quarter of 2021.

“Etisalat will continue its efforts to align its business with the digital mandate it has undertaken, by shifting the operating model, investing in future technologies, generating new revenue streams and by acquiring and disseminating digital capabilities across its markets,” Dowidar said.

Quarter highlights

Highlighting its achievement during the quarter, etislat said it launched the region’s first online Mobile Service Centre, offering real-time visibility and control over business customers’ mobile usage.

“Etisalat crowned strongest brand in the Middle East and Africa region across all categories. Etisalat Misr and Huawei completed the first VoLTE call using Huawei’s Virtual IMS during the quarter,” according to the statement.

The telecom group also increased cooperation with the other government entities to facilitate the telecom subscribers. It collaborated with Smart Dubai to provide cyber security services to Dubai government entities.

“Etisalat is now Etihad Airways’ official telecom partner, providing the best-in-class mobile and digital solutions for the evolving business requirements of the SMB and startup community,” the statement said.

“As part of its commitment to support and empower People of Determination Etisalat partnered with Ministry of Community Development to launch a web extension to make accessing the web autistic friendly,” it added.

Etisalat shares closed 0.14 per cent lower at Dh21.30 before the first-quarter results announcement on Wednesday. The Abu Dhabi market also ended 0.6 per cent down at 6,083.28 points.

— muzaffarrizvi@khaleejtimes.com